Exponential+Functions+2C-1

An Exponential Function is an equation has the general form:

math y=k(m^x) math

Where **k** is the **initial value** And**,** **m** is the **multiplier**. The graph of an exponential function is **continuous** because x can assume all values. **Be careful!** The independent variable x has to be in the exponent.

__**Example 1**__ y=x² is **NOT** an exponential equation, even though it has an exponent.

Exponential Functions can be used to show growth or decay.

__**Example 2**__ If a 1909 wheat head penny is worth $800 in 2003 but raises in yearly value of about 8%, how much would it be worth in x amount of years?

math y=k(m^x) math

The initial value **k** is $800 The multiplier **m** is 1.08 since it increases by 8% each year

math y=800(1.08^x) math

__**Example 3**__ If a 2006 Dodge Charger is worth $22,000 in 2006, but decreases at a value of 6% each year, how much would the car be worth in 2010? Your equation would look like: math y=22,000(.94^4) math math y=$17,176.47 math So your car would be worth $17,176.47 in 2010.

If you come across more difficult investment problems, you can use the following compound interest equation:

math A=P(1+\frac{r}{n})^{nt} math

A= ending amount P= beginning amount/ principle R= interest rate N= number compounding per year T= total number of years

With most problems, you will be given 4 out of the 5 pieces of information. It is your job to find the value of the 5th variable. Use this [|link] to further you knowledge with exponential function